Scott Sumner on weak US data amid May Day protests

Demonstrators calling for social, economic and racial justice march in New York May 1, 2015. In New York, a crowd of protesters waved banners for Freddie Gray (Reuters / Darren Ornitz) / Reuters

May Day, also known as International Workers Day, is one of the rare holidays that is celebrated around the world. And It is also a day that has long been marked by people marching in the streets, demanding reforms in the fight for workers’ rights. Guest host Ameera David weighs in.

Ameera is then joined by regular host Erin Ade. Now that the rioting in Baltimore has cooled down somewhat, it’s time now to look towards the clean-up, and the economic toll that these riots have had on the community. Erin gives us a perspective.

After the break, to discuss the US economy and monetary policy, Economics prof Scott Sumner, Economics professor is on the show. The Federal Reserve has decided to keep interest rates at zero due to employment not yet being at levels the Fed wants to see. Sumner gives us his take on what the weak Atlanta Fed numbers say about so-called secular stagnation. He also casts a skeptical eye on what he sees as a robotic, rules-based approach to monetary policy, making a push instead for nominal GDP targeting. Scott also takes on the concept that the Fed has kept rates “artificially” low.

And in The Big Deal, Boom Bust producer Edward Harrison joins Ameera to interpret the weak US data and to get a read on the Fed’s reaction.